Part D
Deductions
Specific rules for expenditure types
DB 30Cost of certain minerals
This section applies when—
- an amount of cost of a mineral is treated by a person under generally accepted accounting practice as a cost of the mineral for the person and reported accordingly for financial reporting purposes; and
- the mineral is not a listed industrial mineral; and
- no other provision of this Act allows the person a deduction for the amount; and
- an amount derived by the person from disposing of the mineral would be income of the person under section CB 29 (Disposal of minerals).
The person is allowed a deduction for the amount.
If the amount is a cost of trading stock, the deduction is allocated to the income year in which the mineral first becomes trading stock of the person.
If the amount is not a cost of trading stock, the deduction is allocated by section EA 2 (Other revenue account property).
This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.
Compare
- 2004 No 35 s DB 22
Notes
- Section DB 30 heading: replaced, on , by section 33(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DB 30(1)(b): amended, on , by section 33(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).